Applied Materials Develop Innovative fab2farm Business Model

Published on September 10, 2009 at 7:53 AM

To help meet the world's critical need for renewable energy, Applied
Materials, Inc., the global leader in Nanomanufacturing Technology™
solutions with a broad portfolio of innovative equipment, service and software
products for the fabrication of semiconductor chips, flat panel displays, solar
photovoltaic cells, flexible electronics and energy efficient glass, has developed
an innovative fab2farm™ business model for solar deployment designed to
bring cost-effective, utility-scale solar photovoltaic (PV) power generation
capability to local areas and stimulate economic development. The fab2farm model
represents a complete regional ecosystem, bringing together communities, utilities
and solar panel manufacturers to drive down the cost of solar electricity, create
green jobs, and spur local economic activity -- while delivering a supply of
clean energy for decades to come.

Key to the fab2farm model is a locally-sited solar panel factory built by a
solar module manufacturer using Applied's revolutionary SunFab™
thin film production line. The SunFab line produces the world's largest
and most powerful solar PV panels, which are optimally suited for utility-owned
solar farms. Since electricity generation is sited for distribution near load
centers, a solar farm can be quickly deployed without the need for extensive,
costly transmission lines. This utility-scale solar farm would not only generate
cost-competitive, clean, renewable energy for the community, it can help the
utility avoid up to 170,000 metric tons of CO2 emissions per year.

“Applied's fab2farm model unlocks a low-risk, cost-effective opportunity
to integrate solar PV electricity into a community's energy portfolio,”
said John Antone, vice president, Energy and Environmental Solutions, Applied
Materials. “This approach enables a significant share of solar PV investment
dollars to remain in the community, in contrast to fossil fuel based power generation
sources. It would create a regional economic engine generating a steady supply
of skilled jobs and a path to achieving the lowest installed solar energy cost.”

The Applied SunFab production line, a cornerstone of the fab2farm model, is
designed to produce 80MW of solar panels per year or enough to power 35,000
homes during peak energy use hours. Applied estimates that this factory could
generate more than 2,500 jobs and account for $400-$500 million of local economic
activity per year.

“Optimized for utility-scale applications, Applied's SunFab line
produces the world's most powerful thin film modules with approximately
six times the output of conventional glass solar panels,” said Dr. Randhir
Thakur, senior vice president and general manager of Applied's Display
and SunFab Solar Products Group. “With an installed cost of less than
$4.00/watt, SunFab panels cost less per unit area to manufacture and fully install
than conventional glass panels. Over time, manufacturing efficiencies are expected
to reduce these costs even further – while the price of electricity from
conventional sources is forecast to continually rise.”